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For a New Zealand foreign trust (NZFT) to remain eligible for its tax exemption on foreign-sourced income, the contact trustee or tax agent must:

  • complete the NZFT's return each tax year
  • attach the NZFT's financial statements
  • pay the fee for annual returns, if required.

If you want to pay the fee for annual returns using direct debit and do not have an agreement with us, make sure you set this up before filing.

Set up a direct debit agreement with us


Gather your information

For the tax year, you'll need details about the NZFT's:

  • resident foreign trustees
  • settlements and distributions, if any
  • new settlors or beneficiaries receiving distributions, if any
  • future - will this be the NZFT's final return?

You'll also need to send us financial statements that comply with the minimum standards.

 

File an NZFT's annual return in myIR

From the homepage in your myIR account, select:

  • your 'NZ foreign trust' account
  • the 'Periods' tab
  • the tax year you're filing a return for
  • 'File or amend return' under the 'I want to...' section.

Enter the NZFT's return details

You'll need to tell us whether all of the resident foreign trustees are:

This is your chance to update us if the trustees change.

You'll also need to tell us if, during the tax year, the trust:

  • received any settlements
  • made any distributions.

Update the NZFT's connected persons

To change any details for connected persons, click on the tab with their name and role. You can also click on their role in the list to bring up each person's details.

If the trust has new connected persons, you'll need to click on 'Add new connected person' under the list.

For each person connected to the NZFT, you'll need to provide their:

  • name
  • role - that is, connection to the trust
  • taxpayer identification number in their jurisdiction of tax residence, or IRD number if they are a New Zealand tax resident
  • address and contact details.

You'll need to make a declaration that the NZFT's connected persons have agreed to provide us with certain information.

You'll be able to make additional notes, as well.

Roles for connected persons of New Zealand foreign trusts

Enter all settlements and distributions for the tax year

Click on 'Add new settlement or distribution' for each entry. You'll need to tell us the:

  • type of transaction - settlement or distribution
  • full name of the person making or receiving it - for them to appear as an option, you'll need to be sure they've been disclosed as a settlor or beneficiary
  • type of settlement or distribution - cashserviceslandsharesfinancial arrangements or other
  • date paid or credited
  • currency
  • amount in the selected currency.

You'll be able to list additional details, too.

Upload attachments

You'll need to upload the NZFT's financial statements for the tax year. They must comply with the minimum standards for financial statements.

Minimum standards for financial statements

Pay the fee, if required

The fee for annual returns is $50, GST included. If you are required to pay it, this step will come up as part of the process.

If you have a direct debit agreement with us and you want to use it to pay the fee, select:

  • 'Yes' to 'Do you want to make a direct debit payment?'

If you want to pay another way, click 'No' to this question. Finish the rest of your annual return and the fee will show up as an amount owing on your 'NZ foreign trust' account. Click on the account and select 'Make a payment' under either the:

  • 'Summary' tab
  • 'I want to...' section.

Final return

If the trust has stopped being an NZFT during the tax year, click:

  • 'Yes' to 'This is the final return for this account.'

If the NZFT will keep on operating, click 'No'.

If your trust has stopped being an NZFT during the tax year, you'll also need to cancel the trust's registration.

Cancel a New Zealand foreign trust's registration

Review and submit your annual return

Make sure all of your details are right. You can make changes by clicking on the tab you want to edit.

If the information you've given is correct, check the declaration box and submit the NZFT's return.

Log into myIR

What happens next

You'll get a confirmation number and be able to see your return under the 'Submitted' tab of your 'NZ foreign trust' account.

We'll process your request within 10 working days. If we need more information, we'll contact you.

If you were required to pay the fee for annual returns and have not yet paid it, make sure you pay it as soon as possible.

Paying fees for New Zealand foreign trusts

My responsibilities

You'll need to make sure that the financial statements you submit comply with the minimum standards.

Minimum standards for financial statements

If you want to register an NZFT using paper forms, you can do this. You'll have the option to send us the completed and signed forms, with the required attachments, by either:

  • email
  • post.

File an annual return for a New Zealand foreign trust using paper forms